Reduced levels of unemployment support are the “most vivid” example of the risk shift, argues one think tank
, has a proposal moved from policy paper to implementation in a matter of days. The Coronavirus Job Retention Scheme was first proposed by the Resolution Foundation, a think-tank, on March 19th as the scale of the hit to the economy from the pandemic became clearer. Four days later, on March 23rd, Rishi Sunak, the chancellor, made the furlough scheme the centrepiece of the government’s economic response to the virus.
In the first half of the 20th century the state took it upon itself to protect people against, for instance, unemployment and ill-health, establishing compulsory unemployment insurance in 1911 and thein 1948. In the 1980s, when Britons got fed up with the high tax rates levied in part to pay for this, the national mood shifted and the direction of travel changed.
Work, too, has become more precarious. Construction workers, for example, are now much more likely to be self-employed than in the 1980s, even if they work only for one firm, which often leaves them with meaner benefits if they fall sick. Courier firms often require employees to provide their own vehicles, and bear the risk if they go wrong.
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